A and B are partners sharing profits in the ratio of 2 : 1. C is admitted for the 1/4th share of profits, who brings ₹20,000 as capital. After all adjustments related to goodwill, revaluation of assets and reassessment of liabilities etc, Capital of A and B are ₹45,000 and ₹15,000 respectively. It is agreed that partners capitals should be according to the new profit sharing ratio.

Determine the new capital of B.

₹20,000

The correct answer is Option (1) - â‚¹20,000.

Old ratio between A & B = 2:1
C admits with 1/4
Let total share =1
Remaining share after C = 1-1/4
                                    = 3/4
This 3/4 will be divided between old partners in old ratio.
New share of A = 3/4 x 2/3
                       = 6/12

New share of B = 3/4 x 1/3
                      = 3/12

New ratio of A, B & C = 6/12 : 3/12 : 1/4
                               = 6/12 : 3/12 : 3/12 OR 6:3:3 OR 2:1:1

C's capital for 1/4 share = ₹20000
Total capital on C's basis = 20000 x 4
                                    = ₹80000

B's capital = 80000 x 1/4
               = ₹20000